It’s great to be able to see where inventory faults happen and being able to fulfill orders and where the turnaround happens.”

We chose Katana because it seemed to be the most user-friendly software we tried – it is very easy to use and the customer service is great!”

Katana integrates everything, making for effective company-wide resource planning and control.”

Having the shop floor know what they can or can’t make on a given day is amazing, and replaces our previous “system” of spreadsheets.”

Accountant behind a desk punching in numbers on a calculator while looking at documents on the desk

Accurate invoicing regardless of the currency

Many manufacturers sell their products globally to benefit from the international demand. It’s also quite common to purchase raw materials from other countries to keep costs under control. While there are definitely benefits to expanding across borders, there are also challenges. One of those challenges is dealing with multiple currencies.

Luckily, Katana offers multicurrency support so that you can purchase and sell in any currency, and let Katana automatically convert the amount to your base currency. By integrating Katana with Xero, the amounts on invoices and bills are automatically calculated, so you can be sure your accounting records are kept accurate. 

Man in the office calculating finished goods inventory

Directly access your documents from Katana

Connect Xero with Katana using the native integration and keep all your sales and purchase orders synced between the platforms with minimal manual effort.

Whenever you update your order status in Katana, the system automatically generates and updates your invoices based on sales orders and your bills based on purchase orders. This way you never have to worry about manually copying information from one platform to another. 

Katana also lets you directly access the bills and invoices on your Xero account just by clicking on them so you don’t need to switch manually between platforms.

Easily manage your whole inventory from a centralized place

Take control of your inventory

To be able to run your business efficiently, manufacturers need to have a live overview of their business. Xero inventory management software like Katana provides you with real-time data about your raw materials, finished products, production processes, and much more. This information helps you make informed decisions about ordering, production levels, pricing, and more.

With Katana, you have a complete overview of the whole product lifecycle — from raw materials to finished products. Katana equips your business with all the necessary tools needed to reduce admin time and avoid human errors.

Get your Xero inventory in order with Katana

Integrate with Katana and take control of your Xero inventory.
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Xero inventory management FAQ
What is an inventory management system?

An inventory management system is a software that lets you track and manage your inventory, sales, deliveries, and more. In manufacturing, inventory management can also be used to create work orders and bill of materials (BOM)

An inventory management system allows you to track your products across the whole supply chain. From ordering raw materials to manufacturing the products to shipping the finished goods.

Does Xero have an inventory management system?

While Xero is beautiful accounting software, it doesn’t offer everything needed for efficient inventory and warehouse management. The online accounting platform offers some basic inventory management solutions, but there are certain restrictions:

  • It doesn’t track raw materials or work-in-progress. You can only keep track of finished goods.
  • It doesn’t support negative inventory. You can only record a sale if you have the item in stock.
  • Maximum of four thousand inventory items to track

If you need more advanced inventory and order management, you can use an ERP system like Katana. You can seamlessly integrate Xero with Katana to access all the necessary tools to manage your orders and inventory from a central place.

You can learn more about the features Katana offers when integrating with Xero by checking out Xero’s app marketplace or by navigating to the Xero inventory integration page.

What inventory costing method does Xero use?

Xero uses the average cost method, also known as weighted average cost, for inventory costing. This method calculates the total cost of items and divides that by the total number of items.

The value of the item is calculated based on the following formula:

Item Value = (opening balance value + purchases value – cost of goods sold value) / quantity on hand

Besides average cost, there are the following costing methods available:

  • First-in-first-out (FIFO)
  • Last-in-first-out (LIFO)
  • Moving average cost (MAC)
Does Xero have a Bill of Materials?

While there is no bill of materials (BOM) on Xero, you can use third-party platforms to get a BOM feature.

Integrating with a manufacturing ERP, like Katana, enables you to create BOMs for all your products and product variants. You can also add all your raw materials and subassemblies within these BOMs, and Katana will automatically:

  • Makes inventory adjustments
  • Checks material availability for manufacturing orders
  • Calculates the cost of manufacturing
Can you track fixed assets with Xero accounting software?

Xero offers a feature that allows you to track fixed assets. You need to enter the opening fixed asset balances in your general ledger to see the values in relevant reports.

You then need to create a fixed asset register that lets you record and calculate book depreciation for your assets. You can choose the method and the depreciation rate for the assets, and Xero will automatically calculate the drop in value.

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